London Daily

Focus on the big picture.
Thursday, Jun 25, 2026

Johnson's first meeting with Von der Leyen lays trade deal faultlines bare

Johnson's first meeting with Von der Leyen lays trade deal faultlines bare

The two leaders may have attended the same school but they are treading a diplomatic minefield
If the European School in the leafy Uccle suburb of Brussels teaches its high-flying pupils anything, it is how to be diplomatic.

It came as little surprise then that a meeting of two of the Eurocrat school’s former pupils offered up broad smiles, oodles of platitudes and reminiscences over shared teachers but also a few gentle but pointed signals as to the hurdles of reaching a trade deal by the end of this year.

European School alumni Ursula von der Leyen (1964-1974), the new European commission president, and Boris Johnson (1973 -1975) seemingly opened their political relationship on Wednesday in Downing Street with the intention of putting all the nastiness of the last four years behind them.

In contrast, Theresa May’s first dinner with the commission’s previous president, Jean-Claude Juncker, had led to Brussels briefings that the British prime minister was of another universe.

This time, the consensus was that both sides remained committed Europeans. And for the next three months, at least, before the negotiating positions are set, and the talks start in earnest, this is how both sides want the mood music to stay. But the faultlines are clear.

Von der Leyen said the 11 months between the UK’s exit and the end of the transition period on 31 December 2020 was not long enough to reach a comprehensive deal covering all aspects of the future relationship. She suggested the prime minister might reconsider his rejection of an extension.

In reality, there is little doubt in Brussels that the prime minister will stick to his guns. There is the option for the EU itself to ask for an extension but if, as is likely, this does not happen then the political declaration offers clues as to the areas to be prioritised.

By the end of June the EU will need to unilaterally decide on equivalence in 26 areas in the financial services sector to allow the City to operate largely as it does today for EU clients.

No non-EU country has been deemed to be equivalent in all those areas, and it is a precarious level of access to the European market that can be snatched away. It is a suboptimal position but the government appears relaxed about it. The outgoing governor of the Bank of England, Mark Carney, has also suggested that there is little to be gained in the City being a rule-taker.

Of greater political salience, despite its much smaller economic significance, is the issue of access to UK fishing waters. The political declaration obliges both parties to employ their “best endeavours” to reach agreement. The large European fishing nations insist on their historic rights of access. The threat to close off the European market to UK fish and seafood looms in what senior EU diplomats warn will be a “horrendously complex and fraught” negotiation.

On the other side, British fishermen want radical change from the common fisheries policy under which nearly 60% of fish in UK waters is caught by EU-based boats. Some, whether in Grimsby or Brittany, will inevitably be left feeling betrayed. The talks are expected to go beyond the summer.

On trade in goods, Von der Leyen made it clear that the current business models for the car and pharma industries would have to change. A gamut of checks and paperwork will be required once the UK is outside the single market and customs union, disrupting the frictionless flow under current agreements. But Von der Leyen repeated her intention to agree a “zero tariff, zero quotas” deal. The price for that is agreement on a level playing field for British and European businesses, ensuring the UK does not undercut the bloc in environmental, labour or social standards, and continues to apply state aid rules.

Johnson said he would not “align” the UK to EU standards. That commitment will be unpacked over the coming months. EU officials say the prime minister’s concessions over a customs border in the Irish Sea suggests that he could be allowing himself sufficient wriggle-room to satisfy EU and domestic demands late in the process.

European School pupils are apparently taught to be creative thinkers – much will depend on it.
Newsletter

Related Articles

0:00
0:00
Close
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
Department for Environment, Food and Rural Affairs Unveils £53 Million Investment in Farming Innovation
Foreign Secretary Announces Medical Evacuations and University Support for Palestinians in Gaza
Government-Commissioned Report Highlights Economic Exposure to Climate-Driven Fossil Fuel Price Shocks
Climate Change Committee Warns UK Is Off Track on Emissions Cuts and Calls for Faster Decarbonisation
Prime Minister Keir Starmer Calls for Deeper UK-EU Defence and Industrial Cooperation in Berlin Address
Met Office Issues Red Extreme Heat Warning as Temperatures Set to Surpass 37°C in England and Wales
Bank of England Holds Interest Rates at 3.75% as Inflation Outlook Remains Uncertain
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
UK Biotechnology Sector Receives Increased Public Funding to Support Regional Growth
Police Chiefs Update National Protest Management Guidelines Amid Rising Demonstration Activity
UK Aviation Regulator Expands Support for Regional Airports to Strengthen Domestic Routes
CMA Launches Investigation Into Retail Pricing Across UK Grocery Sector
UK Energy Operator Warns of Winter Supply Pressures Despite Stable Overall Grid Outlook
UK Research Council Expands Funding for Regional Biotechnology and Life Sciences Clusters
UK Compensation Scheme for Post Office Horizon Scandal Reaches 80 Percent Completion
Police Chiefs Issue Updated National Guidance on Managing Large Public Demonstrations
UK Expands Regional Airport Funding Scheme to Boost Domestic Connectivity
UK Competition Watchdog Launches Inquiry Into Grocery Pricing Practices
National Grid Warns of Tight Energy Management Needs During Upcoming Winter Peak Demand
UK Education Department Introduces National Standards for AI Use in Secondary Schools
UK High Court Clears North Sea Carbon Capture Project After Final Legal Challenge Fails
Northern Ireland Leaders Hold Emergency Talks on Trade Disruption Under Windsor Framework
Welsh Government Moves to Expand Social Housing in Response to Severe Affordability Pressures
UK Economy Sees Unexpected Rise in Business Investment in Second Quarter, ONS Data Shows
Scottish Government Unveils Multi-Billion Pound Investment Plan for Renewable Energy and Grid Expansion
UK and EU Agree Enhanced Defence Cooperation Pact Covering Intelligence and North Sea Security
Prime Minister Orders Independent Review of NHS Performance After Record Waiting Lists
Bank of England Holds Interest Rates at 5 Percent as Services Inflation Remains Persistent
UK Heatwave Disrupts Transport, Healthcare and Public Services as Red Weather Alerts Expand Nationwide
Barclays Warns of Growing Cyber Risk Divide Between Large UK Firms and Micro Businesses
European Defence Plans Including Ukraine Integration Prompt UK Strategic Reassessment
UK Equity Markets React as US–Iran Peace Roadmap Eases Oil Price Pressures
United Kingdom Expands Global Clean Energy Partnerships With Brazil, Morocco and Tanzania
Lord David Frost Urges Incoming UK Leadership to Abandon EU Regulatory Reset Strategy
Housing Groups Support Amendment to Strengthen Fire and Gas Safety Access Powers in Social Housing
South London NHS Estates Staff Ballot on Industrial Action Over Pay Structures in Hospital Maintenance Services
United Kingdom Government Invests £60 Million in AI Research Labs at Oxford and University College London
Barclays Cyber Security Report Highlights Rising Threat Exposure Among UK Small Businesses in AI-Driven Attacks
UK Met Office Heatwave Triggers Transport Warnings as Rail Operators Urge Cancellations Amid Infrastructure Strain
×